HR, Management & Due Diligence Audit
HR Audit
The HR Audit is the process of
evaluating the performance of Human
Resource Department and its activities
undertaken, and the policies followed
towards the accomplishment of
organizational goals.
The HR
Audit is conducted to identify the
lapses, shortcomings, gaps in the
implementation of HR functions and
suggesting the remedial actions, if
any. HR audit can be partial or
comprehensive. In the former type of
Audit, few areas of HR are monitored,
whereas in the latter a complete Human
Resource check-up is carried out such
as admin, employee details, handbook,
performance management, training
programmes, termination procedures,
etc.
It is recommended to have an
HR audit once in a year so that, the
performance of the HR department in
terms of its recruitment and selection
process, compensation plan, grading
system, layoff schemes and other HR
functions can be checked. By doing so,
it can be ensured that Human resource
practices are carried out at its best
and is reducing the organizationโs
liability as a whole.
Management Audit
A management audit is an independent and systematic analysis and evaluation of a companyโs overall activities and performances. It is a valuable tool used to determine the efficiency, functions, accomplishments and achievements of the company. The primary objective of the management audit is to identify errors in management activities and suggest possible changes. It guides the management to manage the operations most effectively and productively. In other words, a management audit is involved in evaluation and assessment of the management system and information in the various departments or the entire company. Its reach has been extended to review system and subsystem, authorisation, procedure, accountability, quality of data generated, quality of personnel, etc.,
Due Diligence Audit
In business, a due diligence audit is
basically a careful investigation into
the complete financial picture of a
company. Generally, these audits come
before a purchase, merger or other
major decision that could negatively
influence the finances of one or more
businesses. These audits are generally
used to ensure that no hidden
liabilities exist.
Due diligence
can be compared to an employee
background check on a corporate scale.
Like perspective employees, companies
wishing to be purchased are often
trying to make the most positive
impression possible. The strengths of
the company are often highly stressed
and the weakness is downplayed. A due
diligence audit is the equivalent of
checking references before hiring
Forensic
accounting teams are often the
backbone of a due diligence audit.
These specialists are trained to
thoroughly review the financial
records of an organization for any
discrepancies. Unlike traditional
accountants, forensic accountants are
specifically trained to search for
fraud and hidden assets and debts.
